POST UTME REDEEMERS UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is registered with the Corporate Affairs Commission (CAC) but has not commenced business. What is the implication of this on the company?
A. The company is not liable for any debts incurred.
B. The company is not entitled to limited liability.
C. The company is not required to file annual returns.
D. The company is not eligible for tax deductions.
Question 2
A firm specializing in the production of textiles has a production function given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are 100 units each, what is the quantity produced?
A. 200
B. 100
C. 50
D. 500
Question 3
A consumer is purchasing a product online. What is the responsibility of the consumer in this transaction?
A. To verify the authenticity of the product.
B. To check the product's warranty.
C. To ensure the product meets the required standards.
D. To read and understand the terms and conditions of the sale.
Question 4
A company is considering the implementation of a new marketing strategy. The strategy involves the use of social media to promote the company's products. Which of the following is a primary advantage of using social media for marketing?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product visibility
D. Reduced marketing costs
Question 5
A consumer protection agency is considering a new regulation that would require all businesses to provide a 30-day money-back guarantee for their products. If the agency estimates that 20% of consumers would take advantage of the guarantee, and the average cost of processing a refund is ₦1000, what would be the total cost of the regulation for a business that sells 1000 units of its product per year?
A. ₦20,000
B. ₦200,000
C. ₦2,000,000
D. ₦20,000,000
Question 6
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage of the warehouse that is full?
A. 60%
B. 70%
C. 80%
D. 90%
Question 7
A company is considering a new business venture that would require an initial investment of ₦5,000,000. If the company expects to earn a return on investment (ROI) of 20% per year, and it wants to break even within 3 years, what would be the minimum amount it should earn per year?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 8
A firm's warehousing and stock control system involves the use of a just-in-time inventory management approach. This approach is characterized by which of the following?
A. High inventory turnover rate
B. Low inventory turnover rate
C. High storage costs
D. Low storage costs
Question 9
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are 100 units each, what is the quantity produced?
A. 100
B. 200
C. 500
D. 1000
Question 10
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment but low ongoing costs, while Strategy B involves low initial investment but high ongoing costs. If the company expects to sell 1000 units of the product per year for 5 years, and the price per unit is ₦500, which strategy would result in higher total revenue?
A. Strategy A
B. Strategy B
C. Both strategies would result in the same total revenue
D. Neither strategy would result in higher total revenue
Question 11
In a sole trader business, what is the primary advantage of using a cash basis of accounting?
A. Easier tax compliance
B. Reduced accounting costs
C. Improved cash flow management
D. Enhanced financial reporting
Question 12
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a primary objective of this strategy?
A. To increase brand awareness
B. To enhance customer loyalty
C. To reduce production costs
D. To improve product quality
Question 13
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of laborers, and H is the number of machines. If the firm wants to produce 16 units of output, and it has 4 laborers, how many machines (H) should it hire?
A. 2
B. 4
C. 8
D. 16
Question 14
A company is considering the implementation of a new insurance policy. The policy costs ₦100,000 per year and provides coverage for up to ₦500,000 in case of loss. What is the premium rate of the policy?
A. 20%
B. 25%
C. 30%
D. 35%
Question 15
A firm's cost function is given by the following equation:
A. The firm's cost function is a linear function of output.
B. The firm's cost function is a quadratic function of output.
C. The firm's cost function is a cubic function of output.
D. The firm's cost function is a logarithmic function of output.

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